Question

Which of the following statement is correct? A.A change in demand is a movement along the demand curse, and a change in the quantity demanded is a shift of the demand curve. B.Both a change in quantity demanded and a change in demand are movements along the demand curse, only in different directions. C.Both a change in quantity demanded and a change in demand are the demand curve, only in different directions. D.A change in quantity demanded is a movement along the demand curve, and a change in demand is a shift of the demand curve.

Answer 1

Answer:

The correct answer is option D.

Explanation:

A change in the quantity demanded is a movement along the same demand curve. It is caused because of a change in the price of the product while other factors affecting demand remain constant.

A change in demand is shown by a movement in the demand curve. This is caused by changes in other factors such as income, population, preferences, price of other goods, etc, while the price of the product remains constant.